Onomy Protocol to Spearhead Institutional Adoption of DeFi
Casper, Wyoming--(Newsfile Corp. - December 2, 2021) - Onomy Protocol has announced the creation of a financial infrastructure designed to further connect and advance the decentralized finance (DeFi) space after recent months have unveiled how decentralization is improving the world’s financial system by enacting code-governed protocols that empower communities worldwide. Building on the trustless nature of blockchain to increase yield opportunities, while reducing counterparty risk and operational inefficiencies, DeFi is rapidly onboarding institutional and retail users. Adoption is now expanding beyond the crypto-natives and entering mainstream audiences, with hedge funds, banks, VCs, and retail customers deploying their assets on-chain.
In light of this 'great financial migration' - a term used to define the crystallisation of assets in the on-chain environment, Onomy Protocol is mending the current pain points and building a financial ecosystem to spearhead DeFi's journey. As a layer-1 blockchain network powering a hybrid decentralized exchange, a stablecoin minting system, and a DeFi access wallet, Onomy plans to become the de-facto gateway to intuitively enter and exit any asset ecosystem, while serving as the world's decentralized reserve bank.
Onomy's hybrid DEX employs an Automated Market Maker (AMM) and decentralized order book system to facilitate simple cross-chain trading between the crypto assets and Forex pairs. This creates significant opportunity for institutions to exchange currency within a secure environment that does entail surrendering asset custody to a third party, while still retaining the advanced functionality once limited to centralized exchanges, like interoperability between blockchain economies, limit orders, stop loss orders, and advanced charting.
To meet the needs of the institutions trading at volume and pace internationally, blockchains need to have the fast throughput and settlement finality to keep up. It's well known that 1st generation blockchains like Ethereum, at least in their current guise, don't have the operational capacity to handle international finance at a grand scale. Onomy Protocol's Cosmos-based blockchain is built specifically for high throughput and efficiency. By plugging into the Inter-Blockchain Communication Protocol and building custom bridges to other chains including Ethereum, Near, Avalanche, Cardano, and others, cross-chain swaps become simple to everyone.
Onomy Protocol has announced plans to on-board the $6.6 trillion per day Forex market into DeFi, by enabling anyone to mint their own fiat representations on-chain. These decentralized stablecoins are minted into circulation by locking Onomy's utility token NOM, as collateral, with rebalancing mechanisms enacted to maintain the peg. Financial institutions, enterprises, and individuals may therefore diversify their fiat portfolio, issue payments, settle international balances, and engage with DeFi yield opportunities without exposure to volatile assets.
Through Onomy's DeFi access wallet, assets deployed on multiple chains may be managed via a single interface, simplifying ease of use and adoption whilst facilitating more complex operations like governance voting or staking.
Aiding institutional adoption of decentralized finance, Onomy's products are compliant with regulatory frameworks and remain secure through multiple third-party audits and formal software certification conducted by Informal Systems and IBM's RedHat.
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